Scientific Metals options 50% of Paradox to MGX
2017-02-22 09:09 ET – News Release
See News Release (C-STM) Scientific Metals Corp (2)
Mr. Wayne Tisdale of Scientific Metals reports
SCIENTIFIC METALS ENTERS INTO EARN-IN AGREEMENT WITH MGX MINERALS ON ITS PETRO LITHIUM PROJECT IN THE PARADOX BASIN, UTAH
Scientific Metals Corp. has entered into an arm’s-length earn-in agreement with MGX Minerals Inc., pursuant to which MGX has been granted the option to acquire a 50-per-cent interest in Scientific Metals’ Paradox basin lithium brine property located in Utah in the Western United States.
Under terms of the agreement, MGX has the option to acquire a 50-per-cent interest in the Paradox property by: (i) making a cash payment of $50,000 to Scientific Metals upon execution of the agreement; (ii) issuing 150,000 MGX common shares to Scientific Metals upon execution of the agreement; and (iii) incurring minimum exploration expenditures on the Paradox Property of no less than $250,000 over the course of a 12-month period. If MGX earns its 50-per-cent interest, the parties will negotiate and enter into a joint venture agreement, pursuant to which the parties shall be equally responsible for all future exploration and development expenses on the Paradox property. Further, MGX will have the right to participate in an amount of up to 15 per cent of the gross proceeds of any equity or debt financings of Scientific Metals for a period of 18 months from the date of execution of the agreement.
Scientific Metals’ president, Wayne Tisdale, stated: “We are pleased to partner with MGX on our exciting petro-lithium project in the Paradox basin. We benefit from being an early mover in the Paradox basin and securing what we believe to be key ground which historically demonstrated lithium grades. With deep experience and expertise in the oil and gas sector, we feel that MGX is the right partner to help explore this exciting new basin. Cementing this joint venture will allow Scientific Metals to benefit from their nanoflotation technology that is exclusive to MGX. We look forward to working together to develop our project.”
The Paradox property consists of an aggregate of 111 mineral claims covering approximately 2,200 acres located approximately four kilometres northwest of Intrepid Potash’s Cane Creek operation. Approximately eight wells have been drilled on the Paradox property, with additional historical wells in the immediate area. Historical exploration, as reported by Southern Natural Gas and documented by the Utah Geological and Mineralogical Survey, reported 500 parts per million lithium from well No. 1 Long Canyon (“Concentrated Subsurface Brines in the Moab Region, Utah,” Utah Geological and Mineralogical Survey, June, 1965).
Lithium occurs in the basin in oversaturated mineral brine (40 per cent minerals, 60 per cent water) and was discovered during oil exploration when drill wells intercepted the main brine zone (clastic break 31) of the Paradox formation (“Concentrated Subsurface Brines in the Moab Region, Utah,” Utah Geological and Mineralogical Survey, June, 1965).
The company has not undertaken any independent investigation of the drill results, fluid analysis or other information contained in this press release, nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information or whether the information was prepared in accordance with the requirements of National Instrument 43-101. The company believes that the historical drill results, fluid analysis and other information contained in this press release are relevant to continuing exploration on the Paradox property. MGX and Scientific Metals intend to conduct a review of recent and historical well logs, along with chemical analysis in the area and reprocessing of seismic data, focusing on mineral brine.
Garry Clark, PGeo, of Clark Exploration Consulting, is the qualified person as defined in NI 43-101, who has reviewed and approved the technical content in this press release.
We seek Safe Harbor.
© 2017 Canjex Publishing Ltd. All rights reserved.
Disclaimer
© 2010 Junior Gold Report
Junior Gold Report Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. It may contain errors and you should not make any investment decisions based on what you have read on here. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in the featured companies, as well as sponsored companies which compensate JGR. JGR, it’s owner and affiliates/associates may buy/sell and trade the featured companies from time to time. JGR has been paid by the companies. Thus, multiple conflicts of interest exist. Therefore, information provided here within should not be construed as a financial analysis but rather as an advertisement. Conduct your own due diligence: The author’s views and opinions regarding the companies featured in report(s) are his/her own views and are based on information that he/she has researched independently and has received, which the author assumes to be reliable. You should never base any buying/selling/trading decisions off of our emails and newsletter. The ideas and companies featured are highly speculative and you could lose your entire investment – consult a licensed financial advisor if you are considering investing in any of the featured companies. Subscribers/readers are encouraged to conduct their own research and due diligence. The companies mentioned are high risk and considered penny stocks that contain a high risk of volatility, therefore consult your investment advisor and do your own due diligence before purchasing. Never base any investment decision on information contained in our website or emails or any of our publications. No Offer to Sell Securities: JGR is not a registered broker dealer, investment advisor, financial analyst, stock pickers, investment banker or other investment professional. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold JGR, its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.
Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by the use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for the accuracy of forward looking statements and advises the reader to perform their own due diligence on forward looking numbers or statements.